Write off provision for bad debts

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Akhilesh (Querist)
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12 April 2010 We passed a entry for Doubtful Debts provision last yr i.e.
Bad & Doubtful debts Dr
To Provison for Bad Dets Cr.
Now we want to write off this prov mean these are complety bad debts.What exact entries i have to pass in accounts.

CMA.Palani Arumugam

CMA.Palani Arumugam (Expert)
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12 April 2010 Provision for bad debts a/c. dr
To Party A/c.

shakuntala chhangani

shakuntala chhangani (Expert)
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14 April 2010 Dear Akhilesh, the provision for Bad and doubtful debts is always made through P/L A/c by passing the entry :
P/L A/c Dr.
To RDD A/c
If the debt is bad then only we pass the entry in debtors A/c as:
Bad debts A/c Dr.
To Party A/c
for doubtful debts, entry can not be passed in debtors A/c as it is made on estimated basis on total amount of debtors outstanding.
Regards, CA Shakuntala Chhangani

Akhilesh

Akhilesh (Querist)
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16 April 2010 I think entries should be like

Prov for Doubtful Debts Dr.
To Prov. no longer required Cr.

Bad Debts Dr.
To S. Debtors Cr.

Because for Income Tax purpose prov are fully disallowed, hence when bad debts actually occured, entry no 1 is passed

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